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Royal Caribbean Cruises reported Q2 2024 results that exceeded expectations, showcasing a robust demand environment and strong financial performance. CEO Jason Liberty emphasized the company's achievements, stating, "I'm proud to share our outstanding second quarter results and the continued upward trajectory of our business."
For the quarter, adjusted earnings per share were $3.21, surpassing guidance by $0.51. Revenue growth was highlighted by net yield of 13.3%, reflecting a significant increase in guest spending and improved load factors of 108.2%. Liberty noted, “The strong demand environment is translating into higher revenue and earnings expectations for the balance of the year.”
Royal Caribbean is now raising its full-year adjusted EPS guidance to a range of $11.35 to $11.45, a remarkable 68% year-over-year increase. This guidance is supported by an anticipated net yield growth of 10.4% to 10.9% for 2024, driven by new ship performances and high prices across all key products.
CFO Naftali Holtz reported strong booking trends, stating, "Our 2024 booked position remains very strong across all products and markets and continues to outpace last year in both rate and volume.” The North American consumer remains a driving force for bookings, comprising about 80% of the company's sourcing this year.
Looking ahead, Liberty detailed the company’s strategic positioning within the $1.9 trillion vacation market, asserting, “Our plan to capitalize on this opportunity is grounded in moderate capacity growth and strong cost discipline.” He reinforced confidence in Royal Caribbean capturing more of the vacation market, citing the growing numbers of retirees and younger travelers alike.
Additionally, Royal Caribbean announced the reinstatement of a quarterly dividend of $0.40 per share, highlighting its commitment to returning value to shareholders. Liberty expressed gratitude toward the team, stating, "Their efforts helped accelerate our path to reaching Trifecta and will continue to ensure us to deliver the best vacation experiences responsibly."
Overall, Q2 2024 marks a significant milestone for Royal Caribbean, with the company set on a promising track toward sustained growth, profitability, and shareholder returns, as articulated by Holtz: “With our strong platform and proven strategies, we are creating a lifetime of vacation experiences for our customers while delivering long-term shareholder value.”
This momentum places Royal Caribbean in an advantageous position for the future, as they navigate a dynamic industry landscape and continue to innovate their offerings.